Diesel Engine Fuel, Ultra-Low Sulfur and Bio-Diesel (for On Road use only)
Group 05602, IFB#22781, BOD-June 26, 2014
Bidders’ Questions and Answers
Document Section (Name or Number) / QUESTION / RESPONSE1. / Please provide the Bid results from the last diesel award. The website on the bid provides the first page of all the bidders but no actual pricing? / While this question and answer period is intended to address questions related to the current solicitation, IFB #22781, and not the prior solicitation, the winning prices from last year’s bid can be found on the OGS website here:
2. / IFB – Section 7.15 / Please advise if the minimum order size for ALL locations is 250 gallons. Does this mean if a facility has a 10,000 gallon tank the minimum order is still 250 gallons? / Yes. Per Section 7.15 of the IFB, minimum delivery size is 250 gallons.
3. / Please advise the Tank Wagon and Motor Transport locations are broken down? / No, contract users did not specify Tank Wagon or Motor Transport deliveries.
4. / Attachment 01 – Price Pages / Price Sheet – Are we to assume that all volume is tank wagon deliveries? / No assumptions can be made since users did not specify Tank Wagon and Motor Transport. If there are specific questions about deliveries, bidders can contact the end user directly for clarifications (contact information, when available, is contained in the Delivery Schedules – Attachments 9 and 10).
5. / IFB / Is pricing to include all Federal and State Taxes? / Yes, see Section 7.20 of the IFB.
6. / IFB – Section 7.32 / This contract requires an engineering contract also? It’s not just a fuel supplier contract it is also an engineering contract according to page 33 item 7.32? Is this a mistake? / No, this is a fuel contract, however, per Section 7.32, any contractor is required to provide these services when requested or to investigate a complaint.
7. / Attachment 01 – Price Pages / Please explain the pricing sheets. Tank Wagon (TW) and Motor Transport (MT) pricing is very different. Please advise where do I list my TW and where do I list my MT pricing? / There is no mechanism in the pricing sheets to provide separate pricing for Tank Wagon (TW) and Motor Transport (MT) deliveries. There is, however, an option in the pricing sheets to provide a volume discount for orders greater than 5500 gallons, which would be Motor Transport deliveries.
8. / Attachment 01 – Price Pages / Example Item # 1 Albany county Diesel Regular – 618,165 gallons? What portion of this is Tank Wagon Business and what portion is Motor Transport business? Where do I state the TW price and where do I state the MT price? / See the answers to Questions 4 and 7 above.
9. / MWBE / I looked through your MWBE directory and I only found one MWBE hauler than can do tank wagon deliveries for me in the Albany area. Which means out of all Counties available for bid I only have 1 county that I might be able to submit pricing for unless I am able to location additional tank wagon haulers. / Goals were based on availability of suppliers and hauling was secondary.
Below are MBE & WBE haulers that can also be used for tank wagon deliveries.
FLORENCE CONSTRUCTION CORPORATION
FLORENCE CHILTON
80 LAKE AVENUE SOUTH UNIT 10
NESCONSET, NY 11767
P: 631-584-4460 F: 631-584-5720
E: NYS WBE
DELUXE DELIVERY SYSTEMS, INC.
YOINDRARAMNARAYAN
64 WEST 48TH STREET 4TH
NEW YORK NY 10036
P: 212-376-4500F: 212-293-0395
E: NYS MBE
10. / We are trying to get a handle on historic usage of the fuels listed on the IFB for the Bronx, Westchester and Suffolk Counties. Would you be able to provide actual historical usage for these three counties? This would enable us to provide the best possible pricing for the volume projected for the next two years. Basing our calculations on filed requirements only will require us to price in a greater amount of risk which will translate into a higher price per gallon / The following information is a rough approximation of the types and quantities of diesel fuel purchased off of state contract, during the time period of August 2013 to March 2014, for Bronx, Suffolk, and Westchester Counties:
Bronx:
B5 BioDiesel: 5,500 gallons
Regular: 4,900 gallons
Suffolk:
B5 BioDiesel: 869,000 gallons
Premium: 4,068,000 gallons
Regular: 311,000 gallons
Westchester:
B5 BioDiesel: 329,000 gallons
B10 BioDiesel: 11,000 gallons
B20 BioDiesel: 39,000 gallons
Premium: 852,000 gallons
Regular: 961,000 gallons
Bidders are cautioned that past usage is not necessarily a reflection of future usage.
11. / I am trying to get the results from last year’s bid’s 22684 and 22685. / See the response to Question 1. The winning prices for award 22685 can be found here:
12. / IFB Section 1.4 Definitions and elsewhere in the document / Combined bid price is defined as the 2D price weighted by 66.7% plus the 1D price weighted by 33.3%. In reality, with most customers who blend 2D and 1D doing it at a 60/40 rate for 4 or 5 months at the most, the percentage is 13 to 16% 1D. Weighting 1D at 33.3% leads to uneven 1D bid numbers (larger discounts utilized to lower the overall bid price). Some suppliers never add 1D, utilizing additives instead, therefore they lowball the 1D number. Request a reduction in the weighting of the 1D portion of the price formula. / The 2/3 to 1/3 ratio has been the standard in previous Diesel solicitations and OGS declines to make the requested changes for this IFB.
13. / IFB Section 7.15 Minimum Order Size / Minimum order size is set at 250 gallons, which means no matter what size tank the customer has they can order 250 gallons at the contract price, even if they have a 10,000 gallon tank. Freight is the second highest cost for a Contractor, after the cost of the fuel. The more we can deliver to each stop, the less the freight costs. Contractors must make assumptions, based on the delivery schedules provided, on what their delivery costs will be, keeping in mind that customers can order as little as 250 gallons. If NYS would set the minimum as a percentage of the customer's tanks size(s) or storage capacity, Contractors would be able to better estimate their costs and bid more aggressively, without worrying that a customer is going to order 250 gallons into a large tank. Suggest 50 - 60% of capacity, which would leave customers plenty of product to carry them until a delivery is made. / OGS declines to make the requested change at this time.
14. / IFB Section 7.22 Price Revisions for Biodiesel / The Biodiesel portion of the blends is to be priced based on the Wall Street Journal, Cash Price - Fats and Oils, Soybean Oil, Chicago IL. This posting has no correlation with Biodiesel prices in New York, particularly since the specification is not SME but source neutral. There are industry postings available for use that more accurately reflect Biodiesel prices in NYS, such as ARGUS and OPIS. Request biodiesel portion of pricing be changed to biodiesel posting, rather than soybean oil posting. / OGS declines to make the requested change at this time.
15. / IFB Section 7.24 Invoices / Contains the following; "Note: If additives rather than kerosene is used to provide winter protection, the Contractor is allowed to charge market price for the additive…" This statement raises all sorts of issues. First of all additives cannot lower the cloud point of ULSD, so they cannot be utilized to meet cloud point requirements during winter months when the spec is below the industry average of 15F. Secondly, pricing for "Premium 2D and 1D should reflect the cost of additives, including winter additives, thereby giving NYS a way to fairly evaluate all economic proposals. Allowing Contractors to charge "market price" eliminates fair price evaluations. Request removal of this statement. / OGS declines to make the requested change at this time.
16. / IFB Section 8.1 Fill and Vent Requirements / States "the Contractor shall be in a position to make bulk deliveries within 24 hours after receipt of order." Yet according to Supplementing Articles 45 and 46 of Appendix B, General Specifications for Procurement Contracts, orders will call for delivery within a specified number of days after date of order, and Contractors are required to state how many days/hours after receipt of order they will deliver. If a Contractor states they will deliver 48 hours after receipt of orders, how is that reconciled with the above statement? If one Contractor states they can deliver within 24 hours and another states 72 hours, is that taken into effect when award decisions are made? / Section 7.2.1 of the IFB amends Section 4 of Appendix B to establish the following order of precedence for documents:
- Appendix A, Standard Clauses for New York State Contracts
- The Resulting Contract
- Appendix B, General Specifications
- Other Appendices and attachments as deemed necessary
Delivery timeframes do not factor into award evaluation. However, they could come into consideration in the event there is a tie in bids.
17. / IFB Section 8.2 Topping Off Tanks / 2nd paragraph - "Bidder must maintain service facilities and have trained personnel qualified to service the product furnished at the user agency within 48 hours." please advise how this applies to a motor fuel bid. / This requirement is for bidders to provide requested services for fuel, other than delivery of product. For example, Section 8.6 – Sampling of Diesel Fuel Oil provides for sampling and testing of product, and this could be considered a servicing of the product.
18. / IFB Section 8.6 Sampling of Diesel Fuel / The only sample that is representative of product delivered is a sample taken directly from the delivery vehicle. Samples taken from users pumps or tanks should not be used to determine if a product meets specifications because a supplier has no control over, or responsibility for, the conditions in a user's tank, which can affect the quality of the fuel after it is delivered. / We acknowledge that samples taken directly from the truck best represent the product delivered, however, the contract does allow for sampling from the tank in certain situations. In general, samples collected for testing and verification of fuel specifications will be taken directly from the delivery trucks at the time of delivery.
19. / IFB Section 8.21 Cloud Point / Request that suppliers be able to comply with Cloud Point, which requires the addition of ULSK, or Cold Filter Plug Point, which can be achieved through the use additives. ULSK, the addition of which is the only way to lower the Cloud Point to meet winter specifications, is not readily available in the southern service area. / The contract documents contain requirements for both cloud point and cold filter plugging point, and both requirements must be met.
20. / IFB Section 8.15 Non-complying Product – Cold Filter Plug Point (CFFP); 8.16 Price Deduction Table Cold Filter Plugging Point; 8.22 Cold Filter Plugging Point (CFFP); 8.35 Cold Filter Flow Improver; 8.43 Low Temperature Operability / The CFPP chart in 8.16 reflects different values than the chart in 8.43. 8.22 States that the CFPP must be 27F below the specified Cloud Point. 8.35 states 18F below the Cloud Point. The chart in section 8.43 has some CFPP temperatures that are 18F below the respective Cloud Points, and others that are 27F below. While it is possible to achieve a reduction on occasion of 27F, it is highly dependent on the characteristics of the base ULSD, and cannot be guaranteed. A reduction of 18F is much more reasonable and achievable. / We acknowledge the contradictions between these sections and direct the suppliers to use the requirements listed in the Table in Section 8.43 for cloud point and cold filter plugging point. Please note that of the two requirements, cold filter plugging point is the more important one and the contract includes a price deduction if the specification for cold filter plugging point is not met (See Sections 8.15 and 8.16).
21. / IFB Section 9.10 Cold Filter Plugging Point – Biodiesel Blends / Requires Contractor to meet CFPP requirements for biodiesel blends, which is achieved through the use of premium additive packages, yet there is no requirement / pricing for Premium biodiesel blends. Biodiesel blends respond well to winter additive packages, request addition of Premium biodiesel pricing. / The bid price submitted shall be based on meeting all the requirements. OGS declines to add additional, specific pricing mechanisms.
22. / IFB Appendix B – Section 48 – Title and Risk of Loss / Request a change to the first sentence to read "Notwithstanding the form of shipment, title or other property interest, risk of loss shall not pass from the Contractor to the Authorized User until the Product has been received and inspected at the time of delivery by the receiving entity. Acceptance shall occur at delivery." / OGS declines to make the requested change.
23. / IFB Appendix B – Section 79 – Product Acceptance / Request change from "sixty (60) days from date of delivery to accept all other Product" to "upon delivery to accept all other Product." / OGS declines to make the requested change.
24. / IFB Section 8.41 Requirements Summary / Please clarify if the use of Kero (1D) would be required under the contract even if the supplier can meet the specifications for either Premium or Regular grade fuel, solely with the use of approved additives? / For bidding purposes, bidders are required to bid both 1D and 2D pricing for each item they bid.
25. / IFB Section 8.41 Requirements Summary / Please clarify whether or not straight Kerosene (1D) can be ordered as a stand-alone product under the contract, or if ordering by end users would be limited to diesel fuel that meets the contract fuel specifications and requirements for a given time period (January, February, etc.) only. / This bid is intended to result in contracts to provide on-road use only diesel and bio-diesel fuel. However, if a user requests straight kerosene (1D), a contractor may deliver it, at their discretion.
26. / Attachment 01Price Pages / Understanding that for any product in which pricing is offered, both a 1D and 2D price must be supplied, is the supplier allowed to bid on select items under a particular county, or must all items listed for a county be given a bid price. For example, can a supplier bid on the B5 requirements while electing not to offer pricing for a B20 product under the same county? / A supplier can bid on select items under a particular county, for example, they can bid on the B5 but not bid on the B20 requirements.
27. / IFB Section 1.2 Estimated Quantities / Would you please provide a summary of actual usage by product type over the last 12 months by bid area. / Historical usage is not complete. Usage as reported under award 22684 is in Attachment Named “22684ReportedUseage” posted with the Bid Document files on the OGS website.
28. / Attachment 01 Price Pages / On the pricing page, is the Price Per Gallon for each product the finished price over the 3/13/14 reference price per county or an adder to the 3/13/14 reference price? / The Price Per Gallon for each product should be the price at which the bidder proposes to furnish the product, inclusive of all applicable customs, duties, taxes (including LUST), license fees and surcharges, and the bidder’s mark-up.
29. / IFB Section 7.21 / Base calculation does not include premium diesel – cannot verify base price. / Weekly price adjustments for the premium diesel utilize the same adjustment as the 2D (regular) fuel type.
1 IFB#22781